Core Viewpoint - VanEck Vectors Semiconductor ETF (SMH) provides targeted exposure to leading U.S.-listed semiconductor companies, focusing on long-term growth drivers in various sectors while recognizing the cyclical nature of the industry [1] Group 1: Investment Strategy - The ETF concentrates on established, highly liquid semiconductor firms to capture growth in computing, automotive, cloud, mobile, and AI sectors [1] - SMH can serve as a growth-oriented satellite in multi-asset portfolios, a thematic investment in silicon supply chains, or a focused expression of views on automation and data proliferation [1] Group 2: Market Sensitivity - The fund is sensitive to global manufacturing and capital expenditure trends, benefiting from expansions in these areas and new computing paradigms that drive chip demand [1] - SMH may face challenges during inventory corrections, export restrictions, or funding squeezes for capacity [1] Group 3: Portfolio Characteristics - The portfolio typically reflects high quality in profitability and scale, but is also characterized by elevated volatility common in innovation-driven industries [1] - A notable risk is the concentration in a limited number of dominant issuers, which could increase potential drawdowns if market leadership falters [1]

Retail Sales Overview - U.S. retail sales increased by 0.1% in April following a revised 1.7% increase in March, contrary to economists' expectations of no change [1] - The March increase was influenced by consumers making purchases in anticipation of tariff announcements [1] Sector Performance - The largest increases in April were in food services and drinking places (1.2%), building material and garden equipment supplies (0.8%), furniture (0.3%), and electronics and appliances stores (0.3%) [2] - Sales excluding food services, auto dealers, building materials stores, and gasoline stations decreased by 0.2%, below the revised 0.5% gain in March and forecasts of a 0.3% rise [2] Winning Areas Food Services and Drinking Places - Sales in this sector rose by 1.2% sequentially in April and 7.8% year over year [4] - AdvisorShares Restaurant ETF (EATZ) focuses on companies deriving at least 50% of their revenue from the restaurant business [4] - BJ's Restaurants (BJRI) operates high-end casual dining restaurants and has a Zacks Rank 1 (Strong Buy) [5] Building Material & Garden Equipment & Supplies Dealers - This segment experienced a 0.8% sequential sales gain and a 3.2% year-over-year increase [6] - Broad-based retail ETFs like Consumer Discretionary Select Sector SPDR ETF (XLY) and VanEck Retail ETF (RTH) are relevant for this sector [6] - Vulcan Materials (VMC) is the largest supplier of construction aggregates in the U.S. and has a Zacks Rank 2 (Buy) [7] Electronics & Appliance Stores - Sales in this category increased by 0.3% sequentially in April and 0.1% year over year [8] - The rise in electronics sales is expected to benefit semiconductor funds and stocks [8] - VanEck Vectors Semiconductor ETF (SMH) tracks companies involved in semiconductor production and charges 35 bps in fees [8] - Universal Electronics (UEIC) is a leader in universal control and sensing technologies for smart homes and has a Zacks Rank 3 [9]